Joe McHugh (Donegal North East, Fine Gael)

I apologise for getting out of the traps a little too fast earlier. I got out of my seat as quickly as people are crossing the Border to spend money. I accept that the Minister will say that the contents of the forthcoming budget are private and confidential until the Budget Statement is made. Will he consider providing some type of stimulus package in the budget? Sweden has introduced a 0% VAT exemption in the case of domestic housing services. Germany has put in place a €2,500 scrappage scheme for cars. Similar incentives and tax initiatives are being offered in various countries. Will the Minister consider reducing the 21.5% VAT rate? It deserves serious consideration in light of the Minister's acknowledgement that €700 million has left the Irish economy since the last budget.

Will the Minister pay particular attention to the price of certain goods, such as baby products? A Cow & Gate baby food product that costs €12.64 in Tesco in Letterkenny costs just €7, on average, in Sainsbury's in Derry. Will the Minister consider reducing the rate of VAT that applies to certain items, such as baby products? He should incentivise people to buy certain products, such as building materials, ecologically friendly products, garden plants and trees. We need to use our imagination and creativity. The reality is that in certain parts of the country, such as my home county of Donegal, the Exchequer is not getting any revenue from the 21.5% VAT rate that was introduced by the Minister last year. Nobody is selling cars. People are not buying products. There is not much point in collecting 21.5% of nothing. Will the Minister consider this imaginative and creative proposal?

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